Middle East and North Africa Concentrating Solar Power Knowledge and Innovation Program

CSP as an engine of job creation

5th December 2018

By Heba Hashem

While solar PV supports the most jobs among the various renewable energy technologies, CSP is known to be more labor intensive.

Much of the work required to build a CSP plant needs be performed locally. The largest contribution to job creation happens when a CSP plant is under construction. And when the plant is ready, a significant number of workers are required to carry out essential operation and maintenance (O&M) during the lifespan of the plant.

“During the CSP deployment period in Spain – from 2007 to 2013, when 2,300 MW were installed – there were close to 30,000 jobs corresponding to the construction of plants,” says Luis Crespo, chairman of the Spanish Solar Thermal Electricity Association (Protermosolar) and president of the European Solar Thermal Electricity Association (ESTELA).

Today, Spain’s CSP sector employs around 5,000 people and South Africa’s about 8,900. Worldwide, the industry employs an estimated 34,000 workers, according to the International Renewable Energy Agency’s 2018 annual job review.

“CSP projects create a large number of non-skilled, semi-skilled and skilled jobs during the 24 to 36-month construction phase,” says Pancho Ndebele, founder and CEO of South Africa’s Emvelo Group. The developer’s flagship project Ilanga CSP 1, scheduled to come online in December 2018, saw 1,500 workers at the peak of construction, 85% of which were locals.

CSP projects also provide an enormous opportunity for local suppliers of products such as glass, steel, concrete, piping and cabling, which boosts the number of overall jobs created in the vicinity of a project.

For example, all the glass (1.2 million m2) in SolarReserve’s 110 MW Crescent Dunes plant (Nevada, USA) was locally sourced, with assembly of heliostats completed on site by local workers.

Similarly, the 2,000 tons of structural steel required in this project were US sourced, as was most of the piping, cabling and valves. In addition, about 60 percent of the project’s construction sub-contractors were Nevada based and 90 percent were US based.

Overalls, Crescent Dunes created more than 4,300 direct, indirect and induced jobs, with peak on-site employment of over 1,050 construction jobs. About 25 of the 40 permanent workers required for the plant’s O&M were hired from the local town of Tonopah, Nevada.

“CSP tower technology with integrated molten salt energy storage operates in the same way as a conventional power station with steam powered generation. As a result, we have found that many of the jobs require the same skillsets as conventional energy jobs – from construction through to operations,” says Kevin Smith, chief executive officer of SolarReserve.

CSP also creates new job opportunities, where employees are provided with on-the-job training in new skills, such as heliostat assembly and heliostat field technicians, adds Smith.

In Morocco, the average rate of local workers increased from 30 percent in Noor Ouarzazate I to 50 percent in Noor Ouarzazate II and III, showing how much CSP-related skills have grown in the country over the last few years.

The three phases of the CSP complex employed 2,000, 4,000, and 2,500 people respectively during construction, according to MASEN.

“In those countries that request a specific level either in overall local content or in local employment – as was the case with Morocco and South Africa respectively – the obligations have been largely exceeded”, says Crespo.

“These experiences should motivate other countries as CSP is not only essential for the energy transition, but it is also a powerful lever for economic development.”

The Middle East and North Africa Concentrating Solar Power Knowledge and Innovation Program aims to accelerate CSP investments in the region by addressing knowledge and awareness gaps, linking projects with sources of finance and technical advice, and promoting innovation. This three-year program was launched in late 2016 by the World Bank with support from the Climate Investment Funds (CIF).

The Center for Mediterranean Integration (CMI) is a multi-partner platform where development agencies, Governments, local authorities and civil society from around the Mediterranean convene in order to exchange knowledge, discuss public policies, and identify the solutions needed to address key challenges facing the Mediterranean region.

About CIF

Since 2008, the Climate Investment Funds (CIF) has built a portfolio of over 300 investments in 72 developing and middle-income countries to scale up renewable energy and clean technologies, mainstream climate resilience in development plans and action, and support the sustainable management of forests. Although most programs and projects are still in the early stages of implementation, our funding has already contributed to over 3 gigawatts of new renewable energy capacity and close to 3 million people are already benefiting from CIF-supported climate resilience measures. Our experience shows that with strong leadership, the right technical and financial support, and inclusive partnerships, difficult investment decisions can be made with tangible results.